Perrysburg man convicted of healthcare fraud, charitable foundation scheme
TOLEDO, Ohio (WTVG) - A Perrysburg man was convicted on multiple charges Wednesday including healthcare fraud and running a charitable foundation scheme
According to First Assistant United States Attorney Michelle Baeppler, on May 24, a federal jury convicted Kevin Clay, 39, of Perrysburg of conspiracy, healthcare fraud and making a false statement on an application for charitable tax-exempt status with the IRS.
According to court documents and evidence presented during a four-day trial before Judge Jack Zouhary, Clay was the co-owner of Theramedical, LLC, a pharmaceutical marketing company that specialized in compounded pain and scar cream.
Evidence showed that Clay and Theramedical recruited and paid individuals to obtain prescriptions for the pain and scar cream, some of which cost approximately $15,000 for a single prescription. The prescriptions were submitted to a Cleveland-area pharmacy who then filled the prescription and billed insurance companies.
The Department of Justice says members of the scheme concealed the fact that patients were paid to get the prescriptions, and that the prescriptions were often medically unnecessary. Theramedical generated insurance billings of approximately $17 million from the fraudulent scheme in less than two years.
Clay was also convicted of making a false application for tax-exempt status for the Clay Foundation. In his application to the IRS, Clay claimed the foundation was a public charity, which was false. DOJ says the charity was, in fact, almost entirely funded by fraud proceeds from Theramedical and not the public. Clay conducted little or no fundraising, awarded virtually no scholarships and purchased gold and silver in his own name with foundation funds.
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